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Question

Question 1
Miguel is an entrepreneur considering starting a new business. He is aware of the risks involved but are also motivated by potential benefits. Which of the following choices best analyzes how both risks and rewards might influence Miguel's decision to pursue this path?(1 point)
Responses

The risks outweigh the benefits because a new business has a high chance of failure, making it unlikely that Miguel will experience personal satisfaction.
The risks outweigh the benefits because a new business has a high chance of failure, making it unlikely that Miguel will experience personal satisfaction.

The benefits are appealing because they guarantee wealth and happiness, making entrepreneurship a safe choice with minimal risk.
The benefits are appealing because they guarantee wealth and happiness, making entrepreneurship a safe choice with minimal risk.

The risks and benefits both play a role. Financial gain and personal satisfaction may motivate Miguel, even though he is aware that failure is possible.
The risks and benefits both play a role. Financial gain and personal satisfaction may motivate Miguel, even though he is aware that failure is possible.

The rewards of entrepreneurship are mostly limited to financial gain, so any personal satisfaction Miguel feels is unlikely to affect his decision.
The rewards of entrepreneurship are mostly limited to financial gain, so any personal satisfaction Miguel feels is unlikely to affect his decision.
Question 2

What is the relationship between households and businesses in the circular flow model?

(1 point)
Responses

Households provide goods to businesses.
Households provide goods to businesses.

Businesses provide services to the government.
Businesses provide services to the government.

Households spend money on goods and services from businesses.
Households spend money on goods and services from businesses.

Businesses collect taxes from households.
Businesses collect taxes from households.
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Answer 1

Question 1
The most accurate response regarding Miguel's situation as an entrepreneur is:
The risks and benefits both play a role. Financial gain and personal satisfaction may motivate Miguel, even though he is aware that failure is possible.
This option captures the essence of entrepreneurship, where individuals weigh both the potential risks and the attractive benefits that motivate their decisions.

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Question 2
The best response regarding the relationship between households and businesses in the circular flow model is:
Households spend money on goods and services from businesses.
This statement reflects the core interaction between households and businesses within the circular flow model of an economy.